updated 11:50 am EST, Thu March 1, 2012

Redbox deal with Universal lasts until mid-2014

While it recently ended its agreement with Warner Bros., budget DVD and Blu-ray rental kiosk operator Redbox has now signed a deal with Universal Studios. The deal extends until August 2014 and keeps the 28-day delay window Redbox had with Warner Bros following a home entertainment release. Redbox and Warner argued about the delay window, with the studio arguing 28 days is too early considering the $1.20 daily rental price for the movies.

Warner was insisting on a 56-day delay for the release of its movies, which Redbox didn't consider acceptable. Instead, the kiosk runner opted to buy the DVDs and Blu-ray movies at retail locations, which would make it more expensive. Doing so would enable the company to release the movies at its own pace, however.

Keeping a better deal from Universal could pressure other studios into following suit, since they would know that the alternative to making Redbox buy discs in stores would be to agree to the 28-day term.